|Bid||62.15 x 6500|
|Ask||62.20 x 34400|
|Day's Range||62.05 - 62.25|
|52 Week Range||44.10 - 68.50|
|Beta (3Y Monthly)||0.65|
|PE Ratio (TTM)||44.55|
|Earnings Date||Aug 14, 2019|
|Forward Dividend & Yield||2.10 (3.38%)|
|1y Target Est||67.28|
Ian Whittaker, head of European media research at Liberum Capital Limited, discusses the potential KKR investment in German publishing house Axel Springer.
(Bloomberg) -- Axel Springer SE’s supervisory and executive boards recommended that minority shareholders accept a buyout offer from KKR & Co., saying it would ensure the German publisher’s future growth.The private equity firm’s cash offer of 63 euros a share is fair because it represents a 40% premium over the company’s share price in May, before the talks with KKR became public, Axel Springer said in a statement Thursday.“Over the coming years we will significantly invest in people, products, brands and technology,” Chief Financial Officer Julian Deutz said. “With KKR as a financial and strategic partner we will be able to pursue these initiatives with a long-term focus on growth and profitability.”The proposed buyout of minority investors would see Axel Springer join Bertelsmann SE, the German publisher that owns Penguin Random House, in being shielded from the scrutiny of public markets. Having KKR on board could also make it easier for the company to fund acquisitions and capitalize on turmoil and retrenchment in the digital media industry.To contact the reporter on this story: Stefan Nicola in Berlin at email@example.comTo contact the editors responsible for this story: Rebecca Penty at firstname.lastname@example.org, Eric PfannerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
German publisher Axel Springer said on Monday that its Stepstone jobs portal had bought an 85% stake in Appcast, a U.S. technology company specializing in so-called programmatic advertising, for around 70 million euros ($79 million). Programmatic advertising uses automation to serve job ads to people surfing the internet, using automation and analysis of their browsing history and interests, as they look at web sites. "Through this acquisition, Axel Springer is continuing with its growth strategy and is expanding the portfolio of intelligent recruiting and matching technologies of Stepstone group," Springer said in a statement.
(Bloomberg Opinion) -- Aston Martin’s owners are painfully accustomed to clutching at straws. Share of the British luxury carmaker fell as much as 57% in the wake of October’s initial public offering. An agreement between two of its main shareholders to swap a 3% stake provides some tentative reasons for optimism.On Monday, Investindustrial Advisors SpA, the Italian-owned private equity firm that owns about 31% of Aston Martin Lagonda Global Holdings Plc, said it may offer to buy seven million shares for 10 pounds ($13) apiece – against their IPO price of 19 pounds.This isn’t a takeover bid for the whole company, but the buyer would have to make the deal available to all shareholders given the move would enhance its already strong influence.Kuwaiti investment funds that have a holding of a similar size have committed to accept. The shares were trading at 10.21 pounds on Monday. If the stock holds above the offer price, the Kuwaiti funds will likely be the only ones to tender.It’s a nifty piece of finance. The seller gets 6% more than the three-month volume-weighted average price for its shares. Placing them in the market would necessitate taking a discount. The downside is that the convoluted offer structure injects a delay and an element of uncertainty.Both sides sold stock in Aston’s IPO. The Kuwaitis have sold more since, and both sides were expected to exit fully in time. The Kuwaiti sale suggests a desire to avoid exposure to further declines in the share price. Investindustrial’s position is harder to read. It may judge Aston to be good value at this level. Or it may be seeking to protect the value of its existing holding, conscious that another big investor is actively selling. Either way, the deal offers some needed technical support for the shares.The question in the background is whether Aston could be the next poor performer on the stock market to get a takeover bid. From Axel Springer SE to Oriflame Holding AG to Merlin Entertainments Plc, the vogue is for a return to private ownership.The snag is timing. The Aston investment case hinges on the launch of its new DBX sports utility vehicle, a car the maker claims will address the unmet need for an SUV that is both luxurious and beautiful. Shareholders may be loath to accept anything but a knockout bid before the DBX’s success is clear. And once that happens, Aston may either be beyond reach – or untouchable.To contact the author of this story: Chris Hughes at email@example.comTo contact the editor responsible for this story: Edward Evans at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg Opinion) -- It should be easy to dismiss a takeover that is cheap enough to be called a take-under. Yet the bid for Oriflame Holding AG by its founding Jochnick family has prompted some embarrassing choices by the board and some of the beauty group’s biggest shareholders. They are bizarrely backing an offer they admit fails to capture the group’s full value.Directors of companies with dominant family shareholders like this have a special obligation to protect minorities on the register. It’s a live issue. The Jochnicks own 31% of Oriflame. At Axel Springer SE, the Springers are trying to take the German publisher private with the help of buyout firm KKR & Co.Sadly, the Oriflame situation shows a dispiriting lack of conviction. The independent directors say the 8.9 billion Swedish kronor ($950 million) offer for the shares not already owned by the family doesn’t reflect the “full intrinsic value of the company.” Such a statement should lead to a vigorous defense. It wouldn’t be difficult to attack a bid that values the business at a 35% discount to its peer group, based on estimated earnings. Nor would it be a stretch to suggest its timing may be opportunistic: The offer came after the shares had fallen nearly 60% in the preceding 13 months.Instead, the directors have reached just the opposite conclusion: a recovery is a long way off, the short-term risks to the share price are high, and consultant PwC says the offer is fair, so, in fact, shareholders should accept.Call it quantum governance. Like subatomic particles, Oriflame’s independent committee is in two places at the same time.Some of the company’s top shareholders seem to have been influenced by this, as you might expect. Swedish state pension funds AP1 and AP4 say the offer undervalues the company – yet they will accept. This is despite their clearly stated commitment to invest for the long term.It is easier to excuse the funds than the board. Their decision isn’t against the interests of the company as a whole, given the family should be a good owner. Redeploying capital into other investments may well deliver higher returns if the funds have smart investment ideas; the bid offers a chance to exit hard-to-sell stakes at a premium instead of a discount. Nevertheless, selling out jars with their patient investment philosophy.The independent directors, to their credit, looked for a counter-bidder – a tough job given the family's blocking stake. But they should have also sought a better deal from the family by suggesting ways the company could boost its value without a takeover. A standard toolkit is available: Oriflame could take on more debt to fund a buyback or special dividend. It could tell its story better. The snag is that a defense needs a defiant leader – and the longstanding CEO is sitting on the sidelines, having recused himself from the independent committee. The Jochnicks have indicated they want to keep current management.At both Oriflame and Springer, shareholders can be grateful the bids provide the option of getting out at a premium. But if Oriflame shareholders really believe in the long-term prospects of the company, you would expect them to hang on.To contact the author of this story: Chris Hughes at email@example.comTo contact the editor responsible for this story: Edward Evans at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Axel Springer, the German publisher, said on Thursday it would combine the operations of its two main U.S. units, millennial-focused financial news site Business Insider and market researcher eMarketer. The news comes as private-equity house KKR readies an offer to buy out minority shareholders in Springer for 63 euros a share, supporting its main owners who want to take the company private and pursue long-term growth. Insider Inc. and eMarketer Inc. will join forces on Jan. 1, 2020, and Insider CEO Henry Blodget will head the merged operation, Springer said in a statement.
(Bloomberg Opinion) -- Closing a leveraged buyout in Germany can be as painful as pulling teeth. That isn’t deterring KKR & Co. as it tries to grab a stake in the country’s most influential publishing business.The U.S. private equity firm’s 6.8 billion-euro ($7.7 billion) deal to take Axel Springer SE private with its founding family comes with some big compromises. They only highlight the lengths to which firms have to go to deploy their burgeoning pools of capital.This is far from a conventional LBO. Friede Springer, of the newspaper publisher’s founding family, and Mathias Doepfner, its chairman and CEO, aren’t selling their combined 45% holding and will stay in the driving seat.KKR is bidding for a minimum 20% stake. If it succeeds, the next step would be to delist Axel Springer. The U.S. firm would be left with only a simple minority stake and joint control of the business alongside the founding family.The management, strategy and capital structure are unlikely to change dramatically. KKR may be able to apply leverage to the vehicle that holds its shares, using dividends paid by Axel Springer to fund the interest payments on the debt. That wouldn’t provide much of a lift to the private equity firm’s returns.The path to a decent gain here most likely lies in expanding Axel Springer’s classifieds businesses and bringing the company back to the market at the sort of valuation commanded by the likes of Rightmove Plc and Auto Trader Group Plc. Shares of the two companies trade at more than twice the 11 times estimated Ebitda multiple ascribed to Axel Springer in this transaction. Throw in some acquisitions in listings, and the publishing arm, which includes newspapers Bild and Die Welt, would become marginal from a financial perspective.Classifieds generate roughly 40% of Springer’s revenue, but the division’s margins significantly lag those of rivals in the listings market. Boosting them will require hefty spending on marketing and digital functionality. A profit warning accompanying the deal only rams home the message that the performance of this company is going to get worse before it gets better.Still, this isn’t a big outlay for KKR. Buying out all the minorities, excluding other family members, would cost roughly 3 billion euros. Debt funding might cut that by a third. Without the turbo-boost of leverage, making a 20% internal rate of return will be tricky: essentially, the value of Axel Springer’s unlisted shares would have to double over the next five years.The question is whether KKR has done enough to get this over the line. The takeover of German healthcare group Stada Arzneimittel AG was a tortuous affair. A private equity bid for Scout24 AG, another German classified ads business, foundered after failing to win sufficient support from investors.The 40% premium the buyout firm is offering over Axel Springer’s undisturbed stock price will be hard for minority shareholders to resist – all the more so given a counter-bid is unlikely to emerge at this stage given the involvement of the family in the sales process.That may make KKR’s job of sealing the deal easier. That’s just as well. It will need to save its energy for getting the investment to make money.To contact the author of this story: Chris Hughes at email@example.comTo contact the editor responsible for this story: Edward Evans at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
In this article we are going to estimate the intrinsic value of Axel Springer SE (FRA:SPR) by estimating the company's...
Funds controlled by U.S. private equity investor KKR on Wednesday offered 63 euros a share to buy out minority shareholders in Axel Springer in a deal agreed with the German publisher's main shareholders. It will be subject to reaching a minimum acceptance threshold of 20% of Springer's share capital, KKR and Springer said. The offer is being launched in concert with the company's main shareholders, founder Axel Springer's widow Friede and CEO Mathias Doepfner, who want to take the firm private following a slide in the share price over the past year.
BERLIN/FRANKFURT, June 6 (Reuters) - A leading German jobs portal hit out on Thursday at Google's launch of its own job-search product in Europe's largest economy, saying the U.S. company had abused its dominant position to grab an overnight market lead. Stepstone, owned by publisher Axel Springer, said the number of inquiries it was receiving via the world's leading search engine had declined since Google for Jobs went live in late May.
Overview British fund manager Neil Woodford has suspended trading in one of his 3.7 billion pounds ($4.69 billion) equity income fund following an investor exodus resulting from serial underperformance. German media group Axel Springer SE has more than doubled its stake in UK online estate agent Purplebricks Group PLC from 12.4% to 26.6%, which could pave the way for a potential bid for the company. Majestic Wine PLC in a bid to focus on its Naked Wines subscription business, is stepping up preparations for an outright sale of its stores after Gatemore Capital Management, an activist investor, revealed it had acquired about 4% of the company.
Axel Springer's share price jumped more than 20% on Thursday after the German publisher said its main owners were in talks with U.S. investor KKR to take the $5.4 billion company private and pursue a long-term growth strategy. Springer's shares had lost more than a quarter in value over the past 12 months as investors grew impatient over its heavy digital investments and the drag from circulation declines at legacy media titles including the Bild daily. In turning to private equity house KKR, founder Axel Springer's 76-year-old widow, Friede, is bringing in an investor known for making long-term media investments in Germany, focusing on digital transformation and international expansion.
Jumps for two of Europe's biggest newspaper publishers helped European stocks gain early on Thursday, recovering from a more than 3-month closing low a day earlier as trade concerns continued to weigh on stock markets. Germany's Axel Springer SE shares jumped to the top of the pan-European STOXX 600 after it said it was in talks with private equity firm KKR about a potential investment in the company. Italy's FTMIB, which has been battered this week on concerns over the country's budget dispute with the European Union, led gains among country indexes with Britain's blue-chip FTSE 100 underperforming due to a slight strengthening in the pound.
The following are the top stories in the Financial Times. Reuters has not verified these stories and does not vouch for their accuracy. Headlines KKR and Springer clan prepare bid to take media group private ...
German publishing house Axel Springer SE said on Wednesday it is in negotiations with private equity firm KKR and Friede Springer of the Springer family for a potential strategic investment of KKR in the company. The negotiations allow KKR to launch a public tender offer to other Axel Springer shareholders to buy their shares after KKR has agreed on a consortium with companies held by Friede Springer and Axel Springer Chief Executive Mathias Döpfner, according to a company statement.
Mid-caps stocks, like Axel Springer SE (FRA:SPR) with a market capitalization of €5.2b, aren’t the focus of most...